Medicare and Medicaid

New Jersey Hospital to Pay United States $7.5 Million to Resolve Allegations of Defrauding Medicare

Published in Hospital Law Weekly, March 29th, 2007

Raritan Bay Medical Center has agreed to pay the United States $7.5 million to settle allegations that it defrauded the federal Medicare program, the Justice Department announced. The settlement resolves allegations that Raritan Bay, headquartered in Perth Amboy, N.J., improperly increased charges to Medicare patients in order to obtain enhanced reimbursement from Medicare.

In addition to its standard payment system, Medicare pays supplemental reimbursement to hospitals and other health care providers in cases where the cost of care is unusually high. These cases are known as "outliers." Congress enacted the supplemental outlier payment system to ensure that hospitals...

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Source: Hospital Law Weekly (2007-03-29)

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